Crude Oil Price Outlook – Crude Oil Rallies Early on Thursday

WTI Crude Oil Technical Analysis

The light sweet crude market has rallied slightly in the early hours on. Thursday, as we continue to see a lot of noisy behavior. That being said, we are in the midst of consolidation, and I think it’s going to be difficult to break out one way or the other, but I also recognize that we have a situation where we’ll be getting inventory numbers, and of course, we have seen a lot of support near the $70 level.

If we can break above the $74 level, which is essentially the 200-day EMA, it opens up the possibility of a move to the $78.50 level. I think that will happen eventually, but I don’t think it’s going to happen easily. I think we continue to see a lot of noise.

Brent Crude Oil Technical Analysis

Brent markets look very much the same with $74 being the massive support underneath and the 200 day EMA sitting just below the $78 level offer and resistance above. We have recently pulled back and tested an area that could be thought of as support. So, it does make a certain sense that value hunters could come back into the market and push to the upside.

Ultimately, I think this is a scenario where the market is going to eventually try to get to the $82 level. But it’s going to take some time to get there. I like the idea of buying short term dips. I don’t like shorting this market, especially as we start to head into the springtime and then eventually summer. Given enough time, the demand should start to pick up again.

For a look at all of today’s economic events, check out our economic calendar.